Freelancing and entrepreneurs sounds similar, isn’t it? But there are a hell lot of differences between the two. A freelancer is someone who works based on number of hours. You would get paid based on the number of hours you are working and you can charge your clients on per hour basis. A freelancer is also a self-employed person just like an entrepreneur but he works for a short time with hourly pay of work. Freelancers have the liberty to work for more than one client at a particular point of time.rnIn sharp contrast, entrepreneurs are the ones who invest a lot of money for building their own business empire. Unlike freelancers, they work for their own company and they focus on the growth as well as prosperity of the business. They would need separate office space and put hoardings there to let people know about their genre of business. Entrepreneurs are leaders who manage a group of people unlike freelancers who only manage themselves.
rnThe major differences between freelancer and entrepreneurs are enumerated below-
Aims of Operation:
The goal of a freelancer is to provide good quality work so that there is a significant increase in the hourly wage. The freelancers are characterized by job hopping with an aim to work for clients who gives them fat paycheck. They can be hired themselves and they are their own workforce. They are typically selling their particular skills in exchange for money. They generate an active income which depends the current hourly rate and their hours of work. rnOn the other hand, entrepreneurs are the creators of an enterprise in which they are responsible for hiring and managing a group of employees. His goal is to make long-term profit which is steady, stable and manage the different kinds of adverse risks. They have passive sources of income in which the sale of their products or services yields money for them.
Nature of work:
The freelancers register as a professional practitioner where there is no need for a business license or a business name. They are not liable to any government compliance and they are enjoying their own freedom of work. A freelancer’s service has only start date and end date with different milestones that are being set. You need to take instructions from your clients so that you can finish off the work in an efficient manner. There are individual projects and the timelines of the project depends on employer and the freelancer. On the successful completion of project, the business relationship between the client and the freelancer ceases to exist. rnThis is not the case with entrepreneurs where they have to register their business names with the local government authorities. It can be a sole proprietorship, joint venture and partnership venture. The entrepreneurs are exposed to strict compliances such as corporate tax filing licensing requirements, intellectual property rights, employment laws, insurance matters and others. Their business would face serious consequences if they do not follow these legal compliances. The entrepreneurs strive to build a continuous relationship with the clients and they tend to nurture a long term relationship with them.
Recruitment of employees/business partners:
The freelancers rarely get so high income that they can hire a group of workers who would for themselves. Mostly they work by themselves. They also do not need any business partners for their functioning. They only need to show their dedication and hard work for getting more number of clients. On the other side, the entrepreneurs need to have business partners so that they can build a vast business empire. This would also enable that they are able to grow their companies at a much faster speed. The entrepreneurs rarely work alone, like the freelancers, and they hire the best of talents who would support them in fulfilling the business objectives.
Clientele range and scale of work:
The number of clients of a typical freelancer is quite less as compared to an entrepreneur. This is because of the fact that the freelancers work on a small scale with limited number of clients. The labour force of an entrepreneur is bigger as they have more number of customers as well as clients. This is because of the fact that their services and products cater to a large number of audiences.
Income and Expenditure:
The monthly income of a freelancer is pretty less and so is their expenditure. They work for fewer clients and hence their income is low. They do not have to manage a team of employees and pay them. This makes their expenses pretty low. In contrast, the entrepreneurs have to pay the capital expenditures including the office rent, electricity expenses, overhead expenses and the utilities expenses. In addition they have to give compensation to the employees and the necessary business permits. Since they have several numbers of clients, so their income is also more as compared to a freelancer. rnThe career growth of a freelancer and entrepreneur is quite different. Freelancers need to figure out the best work in their respective fields which is lucrative and would give them better career growth. On the other hand, entrepreneurs try to increase the number of customers by providing them unique products/services. This would give them the necessary growth in sales which would increase the revenues of the business. They strive to make a business which can have smooth functioning with or without them.
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